In today’s world, much of our life is recorded online. Email accounts, social media profiles, online banking, cloud storage, and even digital currencies are often just as valuable, financially and emotionally, as traditional property. Yet many New Jersey residents don’t realize that without planning, digital assets can be left in legal limbo after death.

What Are Digital Assets?

Digital assets include any electronically stored accounts, files, or property. Common examples are:

• Email accounts (Gmail, Yahoo, Outlook)
• Social media accounts (Facebook, Instagram, LinkedIn, TikTok)
• Financial accounts (online banking, PayPal, Venmo, cryptocurrency wallets)
• Subscription services (Amazon, Netflix, iTunes, Kindle)
• Digital files (photos, videos, documents stored in the cloud)

Some of these have monetary value, while others carry profound sentimental importance.

The Law in New Jersey

In 2020, New Jersey adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). That may sound like a mouthful, but in plain terms, it’s the law that decides who can access your online accounts and digital property after you’re gone. Executors, trustees, or even an agent under your power of attorney may be able to step in—but only if certain conditions are met.

First, the online platform itself might have a contract with you that determines the result. Many companies, like Google with its Inactive Account Manager or Facebook with its Legacy Contact, let you choose in advance what happens to your account. If you’ve set up those tools, your instructions there will override anything written in your legal documents.

Second, your estate plan might also determine the outcome. If your will, trust, or power of attorney includes clear permission, your chosen fiduciaries can step in to manage or close your digital accounts. Without that explicit language, they may hit roadblocks.

That being said, privacy laws still apply. Even with RUFADAA, service providers often need your consent before they release private communications like emails, messages, or stored files. That means without proper planning, your loved ones might not get access to important information when they need it most.

Problems Without Planning

If you pass away without making a plan for your digital assets, your family could be left with more stress than answers. They might struggle to access important financial accounts that are only online. Precious memories, like family photos stored in the cloud, could be lost forever. Unattended accounts may even become targets for hackers or identity thieves. And on top of that, your executor could run into frustrating delays, legal red tape, and extra costs just to access or close down your accounts.

How to Protect Your Digital Assets in New Jersey

Here are steps to make sure your digital assets are managed according to your wishes:

1. Make a digital inventory. List accounts, usernames, and what you want done with them. (Passwords should be stored securely, not in your will.)
2. Use online tools. Take advantage of a platform that allows you to name a legacy contact or beneficiary.
3. If you own digital assets, they should be included in your estate plan. Work with an attorney to grant your executor or trustee the authority to handle them.
4. Update regularly. As accounts and technology change, so should your digital asset plan

Final Thoughts

Digital assets are part of modern life, and New Jersey law has taken steps to help families manage them after death. But the process still requires careful planning. By taking proactive steps today, you can spare your loved ones unnecessary stress and ensure your online life is handled how you want.

FAQs

1. What are digital assets?
Digital assets include online accounts, emails, social media profiles, cloud storage, financial apps, and cryptocurrency.

2. Do digital assets pass automatically to heirs in New Jersey?
In most cases, no. Privacy laws and user agreements often restrict access unless you’ve planned for it.

3. What law governs digital assets in New Jersey?
New Jersey follows the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA).

4. Can my executor access my email or social media accounts?
Only if you’ve granted them explicit authority in your will, trust, or power of attorney, or if you’ve set online legacy preferences.

5. What happens if I don’t plan for my digital assets?
Your loved ones may face legal barriers, delays, or permanent loss of valuable or sentimental information.

6. Are digital assets considered property under New Jersey law?
Many digital assets are treated as property that can be managed or transferred, subject to account agreements.

7. Can I leave instructions for digital assets in my will?
Yes, but combining your will with secure password management and online account planning tools is best.

8. What’s the difference between monetary and sentimental digital assets?
Monetary assets include cryptocurrency or PayPal funds; sentimental assets include photos, videos, and personal emails.

9. How can I secure my passwords for estate planning?
Use a password manager, write them down in a secure location, or work with your attorney on a safe access method.

10. Can a lawyer help with digital asset planning?
Yes. An estate planning attorney can ensure your documents include digital asset provisions and comply with New Jersey law.

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